Featured
- Get link
- Other Apps
Levels of Strategy and BCG Matrix
Levels of Strategy
Corporate strategy - the different business company working in one corporate .It is a long term strategy. It covers the entire organisation , it is very value oriented level, how expansion is done , if a company wants to buy a new plant , a merger or acquisition.If TATA want to launch a separate division SBU then it is done by TATA Corporate level. It is broad and generalised so it will be not very specific. SBU can decide themselves to implement corporate level strategy.
Business strategies - After the corporate level , it is also known as SBU level strategy . It is how we going to achieve competitive advantage , how to increase market share , it is synced with corporate level , if corporate wants growth , businesses will also look at growth .
Functional strategy -each company has a separate division like marketing , finance , HR. It deals with functional operation . It will sync with business level strategy . If growth is what business strategy then functional will also grow .
Operational strategy - where there are different regions , plants , departments with functional areas. It deals with day to day regulations . Responsibility is delegated.
BCG MATRIX
BOSTON CONSULTING GROUP - It solves the problem and research the loop holes and gives an appropriate strategy.
It is also called the growth share matrix .
On the X axis there is relative market share
On the Y axis there is Market growth rate
Relative Market Share - It helps companies identify their position in the market compared to their leading competitor. Industry is a bigger term and company comes under industry . example - Telecom industries have its multiple companies .so different consumer is subscribing the different companies in it. "A piece of the pie"
Market Growth Rate - is the predicted percentage growth of the industry over a specified period of time. It is how fast the industry is growing.
- Get link
- Other Apps
Comments
Post a Comment